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US stocks surge after Fed chief reassures

February 11, 2014 • Business


FILE – In this Wednesday, Feb. 5, 2014, file photo, traders work on the floor of the New York Stock Exchange. Global stocks were higher Tuesday, Feb. 11, 2014, as investors waited for the new Federal Reserve chief’s testimony to Congress, which might give clues to how quickly the U.S. central bank will withdraw its economic stimulus. (AP Photo/Richard Drew, File)

NEW YORK (AP) — Reassuring words from the new head of the Federal Reserve sent stocks soaring on Tuesday and gave the market its longest winning streak this year.

The Dow Jones industrial average jumped nearly 200 points after Fed Chair Janet Yellen said she would continue the central bank’s market-friendly, low-interest rate policies.

Investors also welcomed news that Congress appeared poised to raise the U.S. borrowing limit without the political drama that happened late last year. That would avert the threat of a disastrous default on the U.S. government’s debt.

“Many of the risks everyone had their eyes on for 2014 are quickly being cleared away,” said Kristina Hooper, head of U.S. investment strategies for Allianz Global Investors.

On Tuesday, the Dow Jones industrial average rose 192.98 points, or 1.2 percent, to 15,994.77. It Login to read more

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